Broader Crypto Market Expected to Surge Following Hamas Ceasefire Proposal to Israel
The war between Israel and Hamas has had a huge impact on the global crypto market. Following the previous drone attacks, Bitcoin and the broader crypto market took a significant hit, dropping in value and initiating a wide sell-off.
However, the situation may take a different turn, this time, as Hamas extends a ceasefire proposal to Israel. The proposal was made by Egypt and Qatar, who have been acting as intermediaries in negotiations between Israel and Hamas. Israel did, however, declare that it would keep up the pressure on Hamas. It would also, meanwhile, dispatch delegates to speak with mediators in order “to exhaust the possibility of reaching an agreement.” At the time of writing, Israel appears to have rejected the proposal, stating that is “far from Israel’s basic requirements” according to reports from BBC.
As the negotiations continue, crypto experts and analysts have looked at the potential effect of a truce between the two warring nations. Let us take a look at what could happen to the crypto market if this happens.
Bitcoin May Rally to $80K
Bitcoin, the world’s largest cryptocurrency by market cap is currently trading at $63,795, representing a 1.15% decline in the last 24 hours according to CoinMarketCap data. Top crypto analysts have made bold predictions about the price of the flagship token rallying to the $80,000 zone by the end of May meanwhile, hoping for the price to flirt with $70k at the end of this week.
Notably, Ali Martinez, a popular analyst on X (formerly Twitter), has suggested that Bitcoin (BTC) is still in its prime zone even though it had surged from $57k to $64k, stressing that the MVRV 90-Day Ratio backs his statement.
Despite #Bitcoin's recent surge from $57,000 to $64,000, the MVRV 90-Day Ratio indicates that $BTC remains in a prime buy zone! pic.twitter.com/xbGUjCcXnJ
— Ali (@ali_charts) May 5, 2024
The activities surrounding Bitcoin as portrayed in its 24-hour trading volume, have surged by 62.75% to $30.2 billion. Additionally, the open interest for all Bitcoin futures has fluctuated greatly during the past day. Particularly, wallets started withdrawing digital assets from Robinhood as a result of the SEC’s Wells notice against the company. With the expected post-halving effect and the possible settlement between Israel and Hamas, Bitcoin might just be on its way to $80k.
Will Other Altcoins Rally as Well?
On the altcoin front, a different scenario might play out. Leading the charge, Ethereum, the second-largest cryptocurrency by market cap may have a delayed price rally according to QCP Capital, a digital asset trading firm in Singapore. The firm stressed that Ethereum is not experiencing similar positivity, adding that its risk reversal is still at -4%. This could be because of the delayed ETH spot ETF approval by the Securities and Exchange Commission for VanEck and Ark21 on 23 and 24 May.
On the other hand, the trending cryptocurrency XRP experienced a short price rally following the SEC’s deadline to file its remedies brief reply. Lawyers argued that the SEC was inconsiderate in seeking a $2 billion settlement from Ripple. At the time of writing, XRP is trading at $0.541, signifying a 0.91% decline over the last day. What is more, the trading volume over the recorded time has by over 215% to $1,89 billion.
On the memecoin stage, Shiba Inu, Dogecoin, and PEPE might be making a return following a ceasefire between Israel and Hamas as their growth is mostly fueled by hype, market sentiment, and positive news. At press time, SHIB, DOGE, and PEPE are changing hands at $0.000024, $0.156, and $0.000008468 respectively.
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